When it comes to e-commerce, Amazon is considered to be a giant in this field. It has grown by leaps and bounds when it comes to its presence in this competitive world. Today the company enhancing its logistics operation since the past last decade and it has delivered packages to its customers all across the country. However, this is not the case now as we see that half of the Amazon packages in the United States has been delivered to the customers claims the Morgan Stanley study reported in the CNBC. This is a huge boost in the course of the last few years.
This means that the company is now operating its own cargo planes and freighters that seem to be accelerating its push to now own the complete logistics chain and thus end up its relationship with the companies including FedEx and UPS. With the current rate, the company is all set to pass both the companies in the US package volume with the company seen delivering around 2.5 million parcels on an annual basis when compared to the rival companies like FedEx and UPS delivering 3 and 4.5 billion parcels a year.
The number of Amazon has doubled in merely just one year alone when we see it delivering around 20% of the packages as now, which seems to be half of the previous year figure. The earlier one-day Prime shipping initiative has given a good boost, which seems to be stranded in the current year. For amazon, now things have changed this year as it does not want to deliver much of the packages at higher speed as things have become difficult for the company to crack when compared to the above said rival companies.
Just to get the packages delivered to their customers’ home addresses the company has given huge amounts of money to its rival groups like UPS and FedEx in a year. Now, we see Amazon distancing itself from these groups with the earlier contracts by not delivering the parcels as it did earlier. This has also seen with other groups that use sea and air to deliver the packages to the customers. Earlier in 2016, the company has launched its Prime Air brand that carries both the in-progress delivery drone work along with the cargo planes and they are adding more planes to its fleet in just in few years.
Earlier in 2019, Amazon ended its contract with FedEx for the services like the air transport and ground shipping. The company now relies more on UPS but at the same time it is creating a network of the delivery drivers under the Amazon Flex platform that remains the kind of on-demand contract network that remain similar to the food delivery companies and the Uber as well. Now, as the company is in the process of converting its earlier systems in a self sustained fashion we see things company moving towards more efficient delivery mechanism on its own.